[ari-freedom]

The Fed has control over exactly one interest rate: the interbank lending rate, aka the ‘’discount rate’’.
-
yes that is what I was talking about. The market, not the fed should set all rates. Otherwise you are bound to have imbalances.

[SAJ]

Given that, just offhand, I can name you perhaps 30 rates of different types, not one of them affected in the slightest by the Fed, I'd say that interest rates are almost entirely driven by the market.

Remember one other thing, too. The 'discount window' is not used very much on an ordinary day. Why? Because it is known to the market that it is usually the lender of last resort, and banks using it take an immediate hit to their credibility. ''Wow, nobody else will lend you funds...etc, etc.''